U.S. media report President-elect Barack Obama has decided to nominate Timothy Geithner, head of the Federal Reserve Bank of New York, to be his treasury secretary.
Geithner is one of the top central bank officials who set U.S. interest rate policy and made other decisions aimed at keeping inflation and unemployment in check.
The Obama transition team has made no official announcement, but the news reports say Geithner's nomination is likely to come next week.
"The New York Times" reports that former presidential candidate Senator Hillary Clinton has decided to give up her Senate seat and accept the position of secretary of state.
Senator Clinton's office denied Friday afternoon that she had accepted the job, but a spokesman said talks with the Obama transition team are on track.
Separately, New Mexico Governor Bill Richardson, another former Democratic presidential contender, has emerged as a serious contender for Commerce Secretary. News reports quote anonymous Democratic Party sources as saying Mr. Obama would announce the nomination in coming days.
Sources also say the president-elect is also close to nominating Arizona Governor Janet Napolitano to be secretary of homeland security. As governor of a state that borders Mexico, Napolitano has experience with security and immigration issues, which are the responsibility of the homeland security department.
There also is speculation that Mr. Obama is considering keeping current Defense Secretary Robert Gates, who was appointed by outgoing President George Bush.